DOOH  Market Drivers

Price erosion of Digital Screens

Growth of the DOOH industry and its players is partially limited by the ability to provide and the availability of suitable locations for digital signage displays. Global shipments and revenue of digital signage displays grew at a CAGR of about 17.5% and 13.5% respectively from 2005 to 2009. Consequently, average price of a digital screen fell 5.6% from 2007 to 2009. By 2014, the average price of a digital screen is expected to fall to by another 12%. This trend favours the growth of DOOH media industry as media equipment becomes more affordable and allows industry players to install more digital screens at more locations.

Increasing acceptance of audio visual transit advertising

Traditional TV advertising has proven that screen advertising is effective at audience captive. This same concept is applied in transit vehicles by DOOH transit media players. DOOH transit media players bring the TV out from home into the transit vehicles, so that viewers can watch programs and advertisements on these digital screens while travelling. Furthermore, creative and interesting contents which are shown not only attracts and retains the attention of the audience but would also increase the acceptance of DOOH advertising.

GTP and 10th Malaysia Plan to improve public transportation

One of the Government Transformation Programme (GTP) aims is to increase the number of public transport users from 10% of the population to 25% by end of 2012. The Government targets to increase daily ridership in the Klang Valley by 150% from 240,000 to about 600,000 by 2012 of which bus ridership is expected to contribute about 43% to the growth of public transport ridership from 2008 to 2012. This enormous growth in users of public transportation will be a catalyst for our Group as more companies will realise the significance and reach of DOOH advertising.